Smurfit Westrock has announced the permanent closure of a paper machine at its La Tuque mill and an extrusion facility in Pointe-aux-Trembles, both located in Quebec, Canada. These strategic closures are attributed to persistent difficulties related to operational scale and rising costs. The company stated its intention to streamline its SBS operations and enhance competitiveness within its paperboard business. This move is expected to result in the loss of approximately 90 jobs in the region. While aimed at improving efficiency, the closures highlight ongoing operational challenges that could potentially impact the company's revenue and profitability. The market views these developments as bearish for Smurfit Westrock's stock (SKG.L).
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